13th Apr 2016 08:19
LONDON (Alliance News) - Equatorial Palm Oil PLC Wednesday said it plans to build a USD20.0 million mill at its operations in Liberia that should be operational in 2018, and said the estates planted in 2011 and 2012 have started to bear fruit.
The palm oil company said the 60.0 tonne per hour mill will be constructed at the Palm Bay estate and funded through debt currently being arranged by Kuala Lumpur Kepong Berhad.
However, that USD20.0 million will only fund the cost of the first of two planned 30.0 tonne per hour lines, meaning operations will only be at that level of capacity in 2018. The company did not outline plans for the second line, but said it plans to organise the funding for that line closer to the time.
"The construction of this mill is very significant for the communities in which we operate and for the Liberian government. Given the recent downturn in prices for commodities and oil and gas the Liberian government has put a greater emphasis on agriculture and is providing all necessary assistance to the company to ensure all imports for 'agro-processing' are free of any import duties," said the company.
The estate where the mill is being built is around 24.0 kilometres from the port of Buchanan, where the company has leased 4.5 acres of land to place a tank farm and export facility where the company's production will be transported to before being shipped out.
In another bout of good news, Equatorial Pal Oil said the Palm Bay and Butaw estates are starting to bear fruit from the estates planted in 2011 and 2012, however, the plantations are currently seen as "too small in quantity and yield" to begin processing for crude palm oil.
A further 1,500 hectares of land is being considered for a new plantation to begin taking action to replenish plantations that will soon be harvested.
Equatorial Palm Oil shares were trading up 9.8% to 1.40 pence per share on Wednesday.
By Joshua Warner; [email protected]; @JoshAlliance
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